Even a few billion miles is still inside the solar system. Pluto is about 4 billion miles away.
It's difficult for something to stay between the Earth and a star and be nearby. The Earth moves around the Sun - this provides a baseline to measure stellar parallax, https://en.wikipedia.org/wiki/Stellar_parallax - and anything close to the Sun is also affected by it gravity. That "close" includes regions well beyond Pluto.
"Occultations" are when one object blocks another. For example, detailed observations of when Pluto went by a star gave us clues that Pluto has a very thin atmosphere. Asteroids also cause occultations, see https://en.wikipedia.org/wiki/Occultation#Occultations_by_as... . They can be used to figure out the size of an object. That page shows an depiction of a occultation by Makemake, which is 50 AU out (further out than Pluto). Its shadow is on the Earth for only a few minutes, and it's over 1400km across.